The company, whose customers include the world’s biggest selling jet-maker Boeing (BA.N), Lockheed Martin (LMT.N), and the U.S. government, said sales to Boeing Commercial almost doubled to $24 million in the quarter.

Cost of sales rose about 21 percent, while selling, general and administrative expenses were up about 20 percent.

Looking ahead, the company expects net earnings of $115 million to $119 million, on sales of $1.785 billion to $1.805 billion for fiscal 2008.

In July, it had forecast earnings of $115 million to $118 million, on sales of $1.71 billion to $1.73 billion.

Analysts are expecting earnings of $2.70 a share, before items, on revenue of about $1.72 billion for the period.

Shares of the East Aurora, New York-based company were down 3 percent at $44.75 in noon trade on the New York Stock Exchange, on a day when both Dow Jones Industrial Average .DJI and S&P 500 Index .SPX were down more than 1 percent. (Reporting by Dhanya Ann Thoppil, Aniruddha Basu in Bangalore)